The dollar’s global reign: The Iran war has strengthened the greenback but the story is far from over
Hope for the best and prepare for extremes: Uncertainty over the dollar’s dominance has reduced. Thus, gold, which is a hedge against uncertainty, has stopped rising. Gold, being a yield-less asset (as it generates no cashflow), is now getting hurt by worries of heightened inflation. In the short- to medium-term, given the current scope of the war, the dollar is likely to remain strong and gold weak.
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